Re: Potential 10-bagger? Good article in the Phoenix magazine pasted on Pvr site .Confirms huge value of Barryroe farm out. Multi bagger from here.Jimmy
Re: Potential 10-bagger? Ultra punchYou are correct that the Barry roe reserves are undeveloped contingent resources 2c resources.I do not believe that most readers understand the very subtle differences in the reserve descriptions which is why I described them as undeveloped proved and probable reserves.You should also be aware that the Barry roe field has six wells drilled to date and has an independent report on its recoverable oil volume estimates.so this is not just Pvr promotion material.Jimmy
Potential 10-bagger? I think it could be. Who can really forecast the future. Looks to be such a good gamble to me that I have had a small punt and bought some LOGP shares recently. Also had a small punt on PVR.
Re: Valuation Get your facts right for a change, Jimmy!Barryroe has NO proven and Probable reserves as yet. They are 1C, 2C & 3C Contingent resources!! Who says so? A very reputable source. Providence Resources, no less![link] hurricane Energy web site states the conditions necessary to convert Contingent resources to Proven reserves."ReservesReserves are the part of resources which are commercially recoverable and have been justified for development, while contingent and prospective resources are less certain because some significant commercial or technical hurdle must be overcome prior to there being confidence in the eventual production of the volumes.Contingent ResourcesThese are resources that are potentially recoverable but not yet considered mature enough for commercial development due to technological or business hurdles. For contingent resources to move into the reserves category, the key conditions, or contingencies, that prevented commercial development must be clarified and removed. As an example, all required internal and external approvals should be in place or determined to be forthcoming, including environmental and governmental approvals. There also must be evidence of firm intention by a companys management to proceed with development within a reasonable time frame (typically 5 years, though it could be longer)."
Re: Valuation there will be 656.848.846 share in issue when approved.But still (like PVR) incredible sheap
Valuation After the recent placing and farm out LOGP has 611 million shares in issue and 10% of Barryroe with its 340 million bbl of proven oil and a farm in partner to drill three wells and three sidetracks . The current share prince values LOGP at $0.36 per bbl of independently certified proven and probable oil reserves undeveloped.Usually valued at $5per bbl at development stage. So huge upside here for a field which already has six wells drilled on it.Jimmy
Re: proactive IRISH .
Re: proactive This was the right thing to do for LOGP.Great that loans converted to equity, a real sign of faith thats there is fantastic value here.Jimmy
proactive Lansdowne Oil & Gas Plc (LON:LOGP) has raised £900,000 through a share placing, giving it sufficient capital to cover its costs for the Barryroe project until the groups Chinese farm-out deal completes.Some 69.2mln new shares are being sold at a price of 1.3p each. The placing investors will also receive share warrants, which will exercise at 1.3p also.The Irish oil firms farm-out deal sees Lansdowne selling half of its stake in Barryroe (its interest reduces down to 10%) and the transaction is expected to close in the third quarter.In Friday mornings statement, LOGP told investors that it will now have on-going working capital though to mid-2019.READ: Providence Resources brings in Chinese group to develop BarryroeAs well as the share placing, which has been organised by Brandon Hill Capital, the broker has also agreed to convert a £326,911 debt into equity (at the same pricing as the share placing).Similarly, the LC Capital Master fund has agreed to switch a £680,000 of loan note debt into Lansdowne equity. It retains a holding of further loan notes, and it has agreed to extend the maturity out to June 30.It will ultimately see Brandon Hill hold 12.66% of the company, while the LC Capital Master Fund will hold 29% of the company.Last week, it was announced that a Chinese consortium, backed by state funds, would acquire a 50% stake in Barryroe, taking 10% from Lansdowne and 40% from operator Providence Resources PLC (LONVR).The transaction sets into motion a series of operations that are expected to lead to the fields development. Specifically, the farm-out deal commits the Chinese to fund a three well drill programme, designed to further appraise and test Barryroes reservoirs.The Chinese will be responsible for providing non-recourse financing to Providence and Lansdowne, with the loan repaid from future production volumes.Finances on a better footingIt transforms the proposition for both Lansdowne as well as the financiers that supported the group through the austere period as the company held out for a farm-out deal.In todays statement, Lansdowne chairman Tim Torrington said: Following the recent announcement of the Barryroe farm-out to APEC and the Chinese consortium we have moved quickly to put the company's finances on a firm footing and I would like to thank all our existing and new shareholders for their support.I would particularly like to acknowledge our major shareholders, LC Capital and Brandon Hill Capital Limited for their support of the company through the difficult period caused by the decline in the oil price.He added: With a clear pathway forward on Barryroe and continued improvement in the oil price, we can now return to focus upon value creation"
Re: When do Logp have to raise? In answer to your question: Yes and today Mamms They did some b/s tidy up too with those loans conversions into Equity, which is useful...and a vote of confidence from the lenders too. While smallish in value this raise is still punchily dilutive versus the total current value of the company. But hopefully this 1.3p sets a base for the s/p from which it can now move back up over the coming months.Jimmy has kindly already outlined the - very compelling - potential value in the medium term here and with funds now in place for a decent period of time into the future I'm comfortable to sit and wait.. indeed at these s/p levels I'd accumulate if I didn't have my fair share already..
Re: When do Logp have to raise? So anyway, back to the original question. When will logp have to raise? I expect they are going to run out of road soon - debt without income is ruinously reckless. I expect the SP weakness reflects the need to raise sooner rather than later.
Barryroe deal detail [link]
Re: very disappointing I hear what you're saying Jimmy but that's a medium term strong buy from you, I suspect? .. as I said Friday I understand how this went to 1.5p and understand it can go lower from 1.5 p in the short term .. and it has indeed gone lower again today . And could of course go lower still .. hopefully it doesn't but for those who bet on such stocks regularly - eg me - it won't surprise them if it does go lower again, I expect ..
Re: very disappointing Michu.Lansdowne now have a carried interest for three wells and sidetracks that will most likely be used as future producers in a field with independent certified recoverable oil of 340 million bbl. the purpose of these next wells will determine the location of the field production wells. With 34 million bbls of oil valued at $5 per bbl undeveloped its worth 23 p per share , even allowing for dilution for an equity raise this is an extraordinary investment opportunity .Yes logp needs cash, but its just to keep the lights on, no drilling costs to finance. Strong buy .Good to see some directors buying to validate the opportunity. Jimmy
very disappointing this has gone back to 1.50p ish.. and bad - short term at least - shout by me to say buy around 2p .. oups and apols. (I'm in it with you all too of course and having bought more higher I'm now back to overall flat )10p seems a long. long, long way away still Jimmy? .... indeed I now understand that this could go lower again given the timeframes going forward and indeed possible raise by logp for ahort term keeping lights on funding....but hopefully little/no lower than this.. otherwise scary more apt than disappointing imho..PS; Another e.g. that Aim O&G is brutal and getting more brutal with time imho.. but hopefully value will out here in due course.. granted it seems likely to be very hard earned.. generally, wouldn't it be nice if someone decided to strategically buy into Lansdowne to be involved in the unfolding story.. from this very low level the s/p would push decently on up then, I'd expect..